Wednesday, May 18, 2011

Indonesia's CPO production rise to 25.4 million metric tons in 2012

indonesia cpo production

The data reported by units of foreign agricultural services, the U.S. Department of Agriculture or USDA Foreign Agricultural Service (FAS) in Jakarta said the oil palm industry (CPO) in Indonesia can produce as many as 25.4 million metric tons in the 2011/2012 marketing year that began in October 2011.

The increase CPO production is driven by the expansion of oil palm plantations in Indonesia significantly from year to year. The expansion of oil palm plantations in the period 2003-2009 came from small farmers or farm folk with an average growth of 7.19% per year.

Thereafter, followed by a private company which grew 4.98% per year. Meanwhile, ownership of the government palm plantation declined 0.63% per year in the period 2003-2009.

If the expansion of oil palm plantation remains the same as it is, ownership of small producers of oil palm plantations are expected to increase to 41% in 2012. Meanwhile, the trend growth of ownership by private gardens will remain steady at 52% in 2012.

By doing so, Indonesia's CPO production is expected to continue to grow. The reason is, so far in their fields, usually have a fairly good productivity.

With CPO production forecast of 25.4 metric tons in 2011/2012, implying growth of 1.8 metric tons per year. However, some local industries are not optimistic, they only predicted production growth of about 1.4 to 1.5 million metric tons per year.